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Why Does Organisational Structure Matter?

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Submitted By vikesh284
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119SAM
Organising for Business
Coursework 1

1. Why does organisational structure matter? Illustrate your answer using appropriate examples
…………………………………………………………………………………………………………..

This essay will look thoroughly at organisational structure and its importance to businesses. How an organisation is structured determines the way it operates and performs.

An organisational structure is the way in which a business divides and uses its resources to complete a variety of task to ensure that objectives are met. It clearly allocates responsibilities to employees and departments. The way an organisation is structures will be dependent on the objectives they hope to achieve. An effective organisational structure should be suited to the business which will maximise efficiency and success. If a business uses an inappropriate organisational structure it will hinder the success of the business.

“Good organization structure does not by itself produce good performance ... But a poor organization structure makes good performance impossible, no matter how good the individual managers may be”(Drucker1989). This statement shows the importance of a good organisational structure and how performance in restricted without it.

Furthermore organisational structure is importance for a number of reasons. One benefit is that it provides a framework which the organisation can be organised which will allow the firm to achieve key objectives and aims. Also Tasks are able to be broken down and specified to groups/individuals to complete. As well as this Resources are able to be used more effectively and efficiently.

As previously stated a business which uses a poor organisational structure will hinder their success. This is because of a number of reasons resulting in poor organisational structure. One such problem that can be a result is low morale in the firm. Another

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